We understand that investment in a company’s stock gave a particular percentage of returns in a given period of time. However, knowing how much an investment is making in the long term has become crucial. CAGR (Compound Annual Growth Rate) measures an investment’s average annual growth over a given period. It is a helpful tool for investors because it precisely measures investment growth (or decline) over time.
Here are a few small-cap stocks with a high CAGR return over a period of five years:
Jupiter Wagons
Jupiter Wagons manufactures metal fabrication comprising load bodies for commercial vehicles, rail freight wagons, and components.
In the past five years, the company’s share price increased from ₹ 13.05 to ₹ 300.20, delivering multibagger returns of 2200.38 percent or a CAGR return of 87.22 percent. If an investor had invested ₹ 1 lakh in the company’s shares five years ago, the value of their holdings would have been ₹ 23.00 lakhs today!
PTC Industries
PTC Industries manufactures metal components for critical and supercritical applications for industries like defence, oil & gas, liquefied natural gas (LNG), ships, and so on.
In the past five years, the company’s share price increased from ₹ 238.45 to ₹ 5856.30, delivering multibagger returns of 2355.99 percent or a CAGR return of 89.69 percent. If an investor had invested ₹ 1 lakh in the company’s shares five years ago, the value of their holdings would have been ₹ 24.56 lakhs today!
Jyoti Resins and Adhesives
Jyoti Resins And Adhesives manufactures synthetic resin adhesives like wood adhesives (white glue), under the brand name of EURO 7000. It is now the second-largest-selling wood adhesive brand in India in the retail segment.
In the past five years, the company’s share price increased from ₹ 26.70 to ₹ 1535.00 delivering multibagger returns of 5649.06 percent or a CAGR return of 124.86 percent. If an investor had invested ₹ 1 lakh in the company’s shares five years ago, the value of their holdings would have been ₹ 57.49 lakhs today!
SG Finserv
SG Finserv is in the business of investing activities, investment research, investment banking and wealth management.
In the past five years, the company’s share price increased from ₹ 7.05 to ₹ 565.00, delivering multibagger returns of 7914.18 percent or a CAGR return of a massive 140.31 percent. If an investor had invested ₹ 1 lakh in the company’s shares five years ago, the value of their holdings would have been ₹ 80.14 lakhs today!
Written by Simran Bafna
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